AUDUSD: With a reversal of its Friday weakness occurring on Monday and a follow through now underway, AUDUSD is now preparing to eventually retarget its Feb 08’2012 high at the 1.0842 level. Above here will open further upside risk towards the 1.0900 level, representing its psycho level. Further out, the next upside target resides at the 1.1000/4 levels and ultimately, its July 27’2011 high at 1.1078. Its daily RSI has turned higher supporting this view. On the downside, the risk to our analysis will be a return below the 1.0627 level, its Feb 14’2012 low. If this occurs, the pair should push further lower towards the 1.0568/25 levels where a breather may occur. However, if this fails to happen, we could see the pair aiming at 1.0444 level. All in all, the pair remains biased to the upside medium term.
